Savings Calculator
See how a starting balance and regular deposits grow toward your savings goal.
Building a consistent savings habit
Automating a fixed monthly deposit tends to build savings more reliably than depositing whatever's left over at the end of the month, since it removes the temptation to skip a contribution.
High-yield savings vs. standard accounts
The interest rate you use in this calculator matters enormously — standard savings accounts at traditional banks often pay a small fraction of a percent, while high-yield savings accounts (typically online-only banks) can pay meaningfully more, sometimes several percentage points higher.
Over a multi-year savings goal, the difference between a low-yield and high-yield account can add up to hundreds or thousands of dollars in extra interest for the same deposits, simply by choosing a better account.
A worked example
Starting with $1,500 and depositing $200/month at 4% annual interest for 3 years: the balance grows to roughly $8,850, with about $8,700 from deposits ($1,500 start plus $7,200 in monthly deposits) and about $150 from interest.
Extend the same plan to 4.5% interest instead of 4%, and the balance grows to about $8,890 — a modest but real improvement purely from a better rate, showing why shopping for a higher-yield account is worth the effort even for shorter-term goals.
Sizing an emergency fund first
Before optimizing for long-term growth, many financial guidelines suggest building an emergency fund covering 3-6 months of essential expenses in an easily accessible account. This calculator works well for modeling that goal — enter your target amount as the eventual balance and see how a monthly deposit gets you there.
Once an emergency fund is in place, the same compounding math applies to longer-term goals like a home down payment, a large purchase, or building general wealth — the starting balance and consistency of contributions tend to matter more than chasing the highest possible interest rate.
Frequently asked questions
What interest rate should I use for a savings account?
Use your actual account's APY if you know it — high-yield savings accounts and standard accounts can differ significantly in rate.
Does this account for taxes on interest earned?
No — this shows gross growth. Interest income is typically taxable, so your actual after-tax growth may be somewhat lower.
Is a high-yield savings account safe?
FDIC-insured high-yield accounts (up to standard insurance limits) carry the same safety as a traditional bank account — the higher rate typically reflects lower overhead costs for online-only banks, not higher risk.
How much should I keep in savings vs. invest?
A common guideline is 3-6 months of expenses in accessible savings for emergencies, with additional long-term savings directed toward investment accounts for higher growth potential.
How big should my emergency fund be?
A common guideline is 3-6 months of essential living expenses, though the right number depends on job stability, dependents, and other financial safety nets you may have.